Appliance Insurance

[scoobydooby]

I bought a fridge-freezer 5 years ago and took out insurance cover for 5 years and have paid �25.99 every January to cover this. I have now received a letter from the company (as the 5 years are up) advising me that they are going to cover me for another 5 years (at a slightly higher amount) unless I write to them to cancel. They have listed my bank details and advised of the dates they are planning to collect the direct debits. I think it's a bit of a cheek to expect me to write to them to cancel something I never asked for in the first place! If I was to decide to continue with this for another 5 years, I would end up paying more than the appliance cost me in the first place!!! There's nothing in the original contract to say that this would happen. Should they accept cancellation by way of a phone call?

[Ethel]

You could have written the cancellation letter in the time it has taken you to post this question.

It is always better to do it in writing, and cancel the direct debit.

This is commonly known as inertia selling - they rely on the customer being too lazy to take steps to cancel the thing.

By all means telephone to let off steam, but get that letter in the post!

[dzug]

They should accept cancellation by way of a phone call but it will be safer to write and tell your bank..

If you only want to write one letter, just cancel it at the bank. That will cause the company more work since they will try to collect the DD and it will bounce.

Grudgingly I'd accept that the company has done nothing wrong - your original DD mandate will have been in very general terms and they have given you good notice of the change to the amounts. Still a pain though.

[WendyS]

Cancel the arrangement in writing so that you have a record of it.. And then every month save your �25.99 in a separate savings account towards the cost of eventually replacing your equipment. Some banks are offering up to 10% interest on regular saver accounts. We have one freezer which is over 25 years old and still going strong. . There isn't much to go wrong with them and if you're putting the money aside every month you will probably end up quids in.

[buildersmate]

Fridge-freezers are about the most reliable of all domestic appliances - there isn't much inside them to go wrong.
Breakdown cover on them is consequently generally reckoned to be poor value - every time.
If you need the freezer contents cover, add it to your Home Contents cover - its always one of the optional clauses.

[oldhenry]

How did you get taken in anyway?, All these insurances are a waste of money but give fat commissions to the shops, tell them to stick them!
Only take free warranties.